Bloomberg reported that Transnet SOC Ltd the South African state owned port and rail-freight operator and Swaziland Rail agreed to build a line through the kingdom that will free up capacity to carry coal to Richards Bay.

Mr Brian Molefe CEO of Transnet said “The first train will run in three years time. The link will create additional capacity of 15 million tons annually to Richards Bay Coal Terminal, Africa largest export facility for the fuel.”

He said that the line will use diesel locomotives, with electric power a possibility in a later upgrade.

Mr Molefe said Transnet plans to boost coal deliveries to the terminal by 17% to 74 million tons in 2012.

Mr Molefe said the railway, which will cost ZAR 12.3 billion to ZAR 16 billion will enable Transnet to remove general freight from the Richards Bay coal line and boost shipments to the terminal to 95 million tons a year in the next five to six years.

The 140-kilometer railway will run between the coal-producing province of Mpumalanga and the port to the east, cutting through landlocked Swaziland. The coal terminal owners include London based Anglo American Plc and BHP Billiton Ltd the world largest mining company.

Mr Mlamuli Buthelezi acting CEO of Transnet Freight Rail said “This is a general freight line and will be used to relieve pressure off the coal line.”

(Sourced from Bloomberg)